R S S P & Associates

🏡 TDS on Sale of Property 🏡

Are you thinking about selling your property in India? 🤔 It's crucial to stay informed, about the tax implications regarding TDS (Tax Deducted at Source) under Section 194 IA of the Indian Income Tax Act, 1961.

Under Section 194 IA, its required that a buyer deducts 1% of the sale consideration as TDS when purchasing property valued above Rs. 50 lakhs. This TDS amount is deducted at the time of payment to the seller, which is then deposited with the government.

Here's what you need to keep in mind;
i. Applicability: This provision applies to all types of immovable properties, including land, buildings, apartments, etc.
ii. Threshold: TDS is applicable only if the sale consideration exceeds Rs. 50 lakhs.
iii. Compliance: Both the buyer and the seller must ensure compliance with TDS provisions to avoid penalties and legal complications.
iv. PAN Requirement: It's mandatory for both parties to furnish their PAN (Permanent Account Number) details for TDS deduction.
v. Time Frame: The TDS on the immovable property has to be paid using Form 26QB within 30 days from the end of the month in which TDS was deducted. After depositing TDS to the government, the buyer is required to furnish the TDS certificate in form 16B to the seller.

It is important to have an understanding of these guidelines in order to smoothly navigate the process of selling a property and ensure that you comply with tax regulations. It is always recommended to seek guidance, from a tax advisor who can provide tailored advice based on your circumstances.

Key Interim Budget Announcements - 2024

PART A

➡️ New solar power schemes launched by PM Modi recently would lead to saving of INR15,000-18,000 per households annually who install roof top solar panels. 1cr households will be enabled to get 300units per month fully free.
➡️ PM Awas Yojana Grameen: Close to achieving target of 3 cr homes; 2 cr more homes planned due to growing need.
➡️ Ayushmaan Bharat to cover all worker under ASHA and Anganwadi scheme.
➡️ Government to launch a scheme to help deserving sections of the middle class living in rented houses or slums or chawls and unathorised colonies to buy or build their own houses - Likely positive for Steel, Cement and Building material.
➡️ Corpus of 1 lakh crore to be established with 50 year interest free loans for sunrise domains.
➡️ Railway corridor-port connectivity under DFC - More than 2 corridors to be set up. Also, 3 more rail corridors for Energy, cement and mineral to be added, apart from DFC.
➡️ 40,000 rail bogies to be converted to Vande bharat standards.
➡️ The capex target of FY25 has been set at Rs 11.1 lakh crore, up by 11.1%. FY25 capex outlay at 3.4% of GDP.
➡️ Govt plans to set up more medical colleges by using existing hospital infrastructure and a committee for this will be set up to examine and make necessary recommendation.
➡️ Tourist centre developement - states to be encouraged to take up development of tourist centres- long term interest free loans to provided for states
➡️ More metro trains & namo bharat trains to be expanded to more cities.
➡️ Revised estimate of fiscal deficit is 5.8% of GDP. FY25 BUDGET-DEFICIT TARGET AT 5.1% OF GDP
➡️ INDIA SETS FY25 GROSS MARKET BORROWING INR14.13T, NET INR11.75T.

PART B

➡️ No changes in direct and indirect tax rates.
➡️ To Extend Tax Benefits For Start-Ups To March 31, 2025

Types of Income Tax Return Forms:

ITR-1 Form:

This form is also known as the Sahaj form. Individual taxpayers should go for ITR 1 filing. Any other taxpayer is not eligible to choose this form for ITR returns.

Applicable to the following individuals:

• Resident individual having total income up to Rs. 50 Lakhs
• Individuals having income from salaries, income from single house property, income from other sources etc.
• Individuals having agriculture income up to Rs. 5000
• Individuals who wish to club the income of spouse and children

Not applicable to individuals belonging in the following category:

• Individuals having income exceeding Rs. 50 Lakhs
• Individuals having agriculture income above Rs. 5,000
• Individuals having income from more than one house property
• Individuals having income from capital gains and business

📢 Hey, friends! Income Tax Return Filing Season is here. 💰💼

⏰ Don't forget that the deadline for filing your income tax return is approaching! If you haven't already done so, now's the perfect time to take action and stay on top of your financial responsibilities.

✅ Filing your income tax return not only ensures compliance with the law but also gives you the opportunity to take advantage of potential deductions and get Income Tax Refund.

📝 Here are a few important points to consider:

1️⃣ Gather your documents: Collect all your necessary financial records, including Form 16, Investment Information u/s 80C, Bank Statements, Loan Statements, Share Trading Details and any other relevant information like rental income, bank interest etc.

2️⃣ Stay organized: Create a system to organize your paperwork and receipts. It will make the filing process much smoother and efficient.

3️⃣ Explore deductions and credits: Take some time to research eligible deductions and credits that could help you reduce your tax liability. You might be surprised by what you can claim!

4️⃣ Seek professional advice if needed: If your tax situation is complex or you're unsure about certain aspects, consulting a tax professional can provide valuable guidance and ensure accurate filing.

5️⃣ Don't wait until the last minute: Procrastination can be tempting, but filing early not only relieves stress but also helps prevent potential penalties for late filing.

💡 If you have any questions or need assistance, feel free to reach out. We're here to support each other through this tax season! 💪💼